What Expats Need to Know About Electricity In Germany

Are you planning a move to Germany and wondering about the intricacies of electricity in Germany? Look no further. In this blog post, we will discuss what you need to know about electricity in Germany, covering crucial aspects like renewable energy, primary energy consumption, and more. 

Discover Europe’s shift to sustainable practices, reducing reliance on coal and nuclear energy. Get to know Germany’s energy evolution: renewables and natural gas are shaping its electricity generation future.

Welcome to the electrifying world of “Electricity in Germany.”

Primary Energy Consumption in Germany

In 2021, Germany consumed 12,193 Petajoule of energy, mostly from fossil fuels (75%) followed by renewables (16.1%) and nuclear (6.2%).

Germany’s Energy Mix

Germany’s energy landscape is composed of a mix including natural gas (27.5%), renewable energy sources (16.6%), coal-fired power plants (16.4%), and nuclear power (11.8%). Additionally, contributions from oil, waste, and other sources play a smaller role.

Germany shifted to sustainable energy, prioritizing renewables like wind and solar for a low-carbon future. This shift aims to decrease dependence on conventional energy sources like coal-fired power plants and nuclear energy. 

Primary Energy Sources in Germany

Like many countries, Germany has a diverse array of primary energy sources that play a pivotal role in its energy sector. For example, their electricity generated is from natural gas, oil, fossil fuels, and other energy sources. 

Those sources profoundly impact the country’s energy system and consumption patterns. Let’s explore them in detail:

Fossil Fuels:

• Natural Gas: Natural gas is a significant component of Germany’s energy mix. It is used for a variety of purposes, including electricity generation, heating, and as a fuel for transport. Germany has been actively transitioning towards more efficient and cleaner technologies in the natural gas sector to reduce emissions.
• Coal: Coal has historically been a cornerstone of Germany’s energy system. However, in recent years, Germany shifted away from coal, prioritizing lower carbon emissions and environmental concerns. This shift from coal aligns with Germany’s goal to achieve a more sustainable energy mix.
• Oil: Oil primarily fuels Germany’s transportation sector, providing energy for cars, trucks, and other modes of transport. Like many other European countries, Germany is exploring alternative energy sources to reduce its dependence on oil for transportation.

Nuclear Power:

Germany has undergone a significant change in its stance on nuclear power in recent years. The country decided to phase out nuclear power plants, reflecting its commitment to safer and more sustainable energy sources. In response to global pressure, the European Commission promotes cleaner, safer energy alternatives.

Statistics Regarding Germany’s Transition to Renewable Energy Sources

Germany’s share of renewables has increased from around 5% in 1999 to 22.9% in 2012, reaching close to the OECD average of 18% usage of renewables.

In 2022, renewable energy sources provided 254 billion kilowatt-hours of electricity, accounting for 46.2% of German electricity demand. The share of renewable electricity rose from just 3.4% of gross electricity consumption in 1990, primarily provided by conventional hydro. By 2005, it exceeded 10%, thanks to additional biomass and wind, and reached 42.1% of consumption in 2019.

Regions and Cities in Germany with Renewable Energy

Several regions and cities in Germany have successfully transitioned to renewable energy, leading to economic and environmental benefits:

Freiburg:

• Located in southwestern Germany, Freiburg aims to achieve carbon neutrality by 2050.
• Achievements include energy-efficient buildings, passive solar design, and rooftop solar panels.
• Sustainable transportation options like cycling and public transport are promoted.
• Resulted in a 15% reduction in carbon emissions since 1992 and the creation of over 10,000 renewable energy jobs.

Schönau:

• A small town in southwestern Germany known for its community-led renewable energy initiatives.
• Residents formed a cooperative in the 1990s to purchase renewable electricity.
• The cooperative now generates its renewable electricity and supplies neighboring towns.
• Benefits include local job creation, reduced carbon emissions, and enhanced community engagement.

Bavaria:

• A state in southern Germany will generate 100% of electricity from renewables by 2040.
• Significant investments in wind and solar power.
• Benefits encompass job creation, reduced carbon emissions, and sustainable economic growth.
• These case studies demonstrate successful transitions to renewable energy. They lead to economic prosperity and environmental sustainability in various regions across Germany.

How Are Renewable Electricity Sources Affecting Consumers In Germany?

Germany’s shifting energy mix combats climate change, making renewables vital in embracing low-carbon alternatives. But how does this shift affect electricity bills for consumers?

Historical data reveals that Germany’s goal to transition towards renewables, primarily from wind and solar power, has yielded mixed results on electricity bills. While the increased use of renewables has reduced carbon emissions, it has also impacted the cost of electricity. 

The expansion of renewable energy sources has created a more efficient and sustainable energy landscape. This benefits the environment and reduces dependence on fossil fuels like coal and gas.

Fluctuations in Electricity Bills

In contrast, electricity bills for consumers have seen fluctuations. Factors like the cost of new technologies, electricity demand, and government policies play pivotal roles. 

Small businesses and households have experienced varying impacts, with some benefiting from lower bills due to decreased fossil fuel usage. In contrast, others have seen minor increases due to investment in infrastructure and grid maintenance.

Across EU countries, Germany stands out as a leader in renewable energy adoption, harnessing the wind power potential of the North Sea and the sun’s energy through solar installations. This transition aligns with the European Commission’s vision for a sustainable, low-carbon future.

Consumer reviews regarding the cost of electricity consumption in Germany: 

According to a Reddit post from June 2023, the price for new fixed-price contracts has dropped below 30 cents/kWh, 32% cheaper than at the beginning of the year.

As renewables become an important source of electricity generation, their impact on electricity bills remains intertwined with complex dynamics, ultimately influencing consumers.

While the transition towards renewables is vital for a greener world, balancing the equation between affordable electricity and a sustainable energy future continues to be a challenge faced by most countries worldwide.

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The Available Renewable Energy in Germany

Germany relies heavily on renewable energy sources to meet its energy needs and reduce its carbon footprint in the energy sector. Here are some key renewable energy sources that contribute to the country’s low carbon power generation and total electricity production:

Solar Power (Solar PV)

Germany has invested significantly in solar photovoltaic (PV) technology, making it one of the leading nations in harnessing energy from the sun. Solar panels are widely adopted, not only in large-scale power generation but also by private households.

Wind Power (Onshore and Offshore Wind)

Wind turbines dominate Germany’s power generation landscape, with both onshore and offshore wind farms contributing significantly to net electricity generation. Offshore wind farms in the North and Baltic Seas have expanded the country’s renewable energy capacity.

Biomass

In Germany’s renewable energy mix, biomass power generation plays a crucial role. It involves using organic materials to produce electricity. Biomass contributes to a sustainable energy sector and supports local distribution networks.

Hydropower

Although Germany doesn’t have abundant natural hydro resources, it has implemented small-scale hydropower projects to harness energy from flowing water, adding to its diverse power generation sources.

In contrast to these renewable energy sources, Germany has reduced its reliance on non-renewable sources such as hard coal and natural gas. The German government has taken measures to phase out nuclear power plants, emphasizing the importance of a clean energy transition.

The commitment to renewable energy in Germany has led to a greener power generation landscape and influenced the country’s overall energy policy. As a result, Germany has made significant progress in achieving a more sustainable and environmentally friendly approach to power generation and distribution.

Read more about electricity prices in Germany in 2022.

How Much Does Electricity Cost In Germany?

In 2021, Germany, known for its efficient energy technologies, had an average electricity cost of 32.16 cents per kilowatt-hour (ct/kWh) for households and small businesses. This cost was influenced by the country’s total energy consumption and gross electricity consumption, which is among the highest in the world. 

The demand for electricity in Germany, like in many developed countries, is substantial, driven by various industries and households. Germany has implemented efficient energy generation technologies to meet this demand, making it one of the leading countries in renewable energy production.

Despite its high electricity costs compared to some other countries, Germany’s investment in clean and sustainable energy sources has been instrumental in reducing its carbon footprint. This progress sets an example for other countries looking to transition to more sustainable energy solutions while meeting the energy demands of their population.

Read more about electricity prices in Germany in 2022.

Vattenfall (VATTENFALL) offers the cheapest rates for electricity in Germany. Moreover, Vattenfall is one of Germany’s largest suppliers of electricity and natural gas. For green energy, we recommend Ostrom, the only English-speaking energy company in the country.

Total Energy Consumption and Cost of Germany Compared to Other Countries

Germany has made significant progress in adopting renewable energy sources, but it is not alone in this effort. Here is a comparison of Germany’s performance in adopting renewable energy with that of other countries:

Globally:

• Germany is one of the world’s leading countries in renewable energy usage, with a growing share of green energy in the country’s electricity mix.
• According to the International Energy Agency (IEA), renewable energy sources accounted for 29% of global electricity generation in 2020, up from 27% in 2019.
• China is the world’s largest producer of renewable energy, followed by the United States, Brazil, and India.

Regionally:

• In Europe, Germany is one of the leading countries in renewable energy usage, with a growing share of green energy in the country’s electricity mix.
• According to Eurostat, in 2020, the share of renewable energy in gross final energy consumption in the European Union (EU) was 20.8%, up from 8.5% in 2004.
• Sweden, Finland, and Latvia are the EU countries with the highest share of renewable energy in gross final energy consumption, while the Netherlands, Luxembourg, and Malta have the lowest share.

Energy prices:

• Germany’s energy prices are among the highest in Europe, but most customers continue to support the country’s energy transition.
• According to an article in Energy Post from January 2022, the average power price for households and small businesses in Germany stood at 32.16 cents per kilowatt hour (ct/kWh) in 2021.
• In February 2023, residential electricity prices, including taxes in the EU, varied from 9.2 €/kWh in Hungary to 49.9 €/kWh in Ireland, according to the Household Energy Price Index (HEPI). Germany was among the top five countries with the highest residential electricity prices, at 49.5 €/kWh.

Carbon reduction goals:

• Germany has set ambitious targets to reduce energy consumption and increase the share of renewable energy sources in the country’s energy mix.
• According to the political targets of the German federal government, consumption is to be reduced by 30% by 2030 and by 50% by 2050.
• The EU has set a target to reduce greenhouse gas emissions by at least 55% by 2030 compared to 1990.
• Sweden has a target to become carbon neutral by 2045, while Denmark has a target to reduce greenhouse gas emissions by 70% by 2030 compared to 1990 levels.

Note: Rent is divided into two parts in Germany: cold (Kaltmiete) and warm rent (Warmmiete). Cold rent doesn’t include utilities like hot water and heating, and warm rent does. 

Furthermore, electricity is usually separated from the warm rent. Hence, tenants have to sign up with an electricity provider themselves.

That way, you will pay your electricity bills directly to the electricity provider. Thanks to online electricity cost calculators and comparison platforms, finding a cheap provider in Germany is easy.

Final Thoughts About Electricity in Germany

In this blog post, we discussed insights for expats on electricity in Germany, from renewables to energy consumption and beyond. We have explored how Germany embraces sustainability, moving away from coal and nuclear energy for a greener future.

We have also compared Germany’s performance in adopting renewable energy with that of other countries, both globally and regionally. We’ve also explored Germany’s changing energy mix, unveiling the intricate balance between affordable electricity and sustainability.

We hope this blog post has given you useful insights on electricity in Germany and that you have enjoyed reading it. To learn more about this topic, click the links below for more information and resources. By doing so, you will also help us keep this blog afloat and continue to provide you with quality content. Thank you for your support!